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The U.S. Department of Energy said on September 24 that it intends to put $1.9 billion of federal funding behind 31 grid-improvement projects in 26 states, a package aimed at adding transfer capacity for data centers and other large loads. Recipients will put up $3.35 billion more, bringing the total to $5.25 billion. DOE says the work will make more than 23 gigawatts of additional electricity capacity available.
The Office of Electricity selected the projects under Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades, or SPARK. Sponsors are expected to reconductor or rebuild more than 1,500 miles of line and deploy grid-enhancing technologies across nearly 21,000 miles, Utility Dive reported. Formal financial-assistance agreements are due between October 2026 and January 2027. These are selections, not signed grants.
The 23 gigawatts is transfer capability, not new generation.
That distinction is the story for operators. Extra capacity on existing corridors can move power that is already on the system. It does not build a plant, a substation, or a service drop for a campus.
Alabama Power's Northeast Alabama Smart Grid Deployment is one of the awards aimed at large loads. The utility is slated for $50 million in federal money toward a roughly $184 million project that upgrades lines and deploys advanced transmission technologies to support data centers, manufacturers, and commercial customers, Energy News Beat reported. Entergy Mississippi won a multi-state package covering Arkansas, Louisiana, and Mississippi on the same large-load argument.
PPL Electric Utilities was selected for up to $71.5 million to rebuild about 29 miles of 230-kilovolt corridor in Pennsylvania.
"These investments will get more out of the infrastructure we already have, move more electricity across the grid, and help deliver affordable, reliable, and secure power that will fuel American prosperity for decades to come," said U.S. Secretary of Energy Chris Wright.
Two of the largest selections target the East-West interconnection. The Colorado Energy Office is prime on a roughly $1.2 billion project to raise interregional transfer, and Oklahoma leads the $832 million Three Corners Connector between the Southwest Power Pool and the Western grid.
Baxtel tracks more than 5,200 data center sites across the United States, including 47 in Alabama.
SPARK is the third round of the Grid Resilience and Innovation Partnerships program under the Infrastructure Investment and Jobs Act. DOE opened the $1.9 billion opportunity in March and told applicants it wanted work inside existing rights of way, not new corridors that can take decades. Project periods run up to 48 months.
Reconductoring is the right tool for a grid that cannot wait 15 years for new lines. It is not a substitute for generation. Developers that need power in 2027 still have to lock utility service, substations, and megawatts. SPARK steel will not show up in time to clear those queues on its own.
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